NIFTY : Weekly Chart Analysis – Elliott Wave Insights

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This chart highlights the Elliott Wave corrective structure currently in play. The market is in Wave C correction, providing critical zones for potential opportunities. Let’s dive into the details:

🔍 Wave Analysis Breakdown
Wave A – Impulsive Phase

The initial bullish rally marked strong upward momentum.
This move laid the foundation for the current corrective phase.
Wave B – Corrective Pullback

A partial retracement of Wave A, showcasing indecision and consolidation.
Wave C – Ongoing Correction

Prices are now completing the corrective Wave C, which typically ends in critical support zones:
Primary Zone: 23,054 – 22,742
Extended Zone: 21,893 – 21,618
These zones act as potential reversal levels for a new bullish wave.
📉 Key Scenarios to Monitor
Bearish Scenario – Breakdown Risks
If the price closes below 21,100 on the weekly chart, it would signal a deeper bearish continuation.
In this case, expect a drop toward 19,400 – 19,200, which aligns with long-term support levels.
Bullish Scenario – Reversal Opportunities
If prices find support within Wave C completion zones, a reversal toward 23,500 – 24,000 could materialize.
A sustained move above 23,500 would confirm the beginning of a new bullish wave, targeting 25,000 – 26,000.
📌 Support and Resistance Levels
Support Zones:

Zone 1 (First Completion Zone): 23,054 – 22,742
Zone 2 (Extended Completion Zone): 21,893 – 21,618
Critical Level: 21,100 (break below signals bearish trend).
Resistance Levels:

First Target: 23,500 – 24,000
Higher Targets: 25,000 – 26,500 (if reversal holds).
💡 Strategy for Investors
Short-Term Trading Plan
Entry Points:

Look for price action confirmation within 23,054 – 22,742 or 21,893 – 21,618.
Watch for bullish candlestick patterns (hammer, engulfing) or RSI oversold conditions.
Stop-Loss:

Place a stop-loss below 21,100 to limit risks.
Target Zones:

First Target: 23,500 – 24,000.
Trail stop-loss for higher targets at 25,000 – 26,000.
Long-Term Investment Plan
Accumulation Strategy:

Use laddered buying within 21,893 – 21,618 and add positions closer to 21,200 if prices dip further.
Stop-Loss:

Place below 21,000 on all positions.
Exit Strategy:

Gradually exit at 24,000 and above, holding part of the position for 25,500 – 26,500 if the bullish trend resumes.
🔑 Key Observations
Wave C Correction in Progress: Prices are nearing completion zones, creating opportunities for both traders and investors.
Confirmation is Key: Wait for bullish signals before entering long positions. Avoid premature entries.
Break Below 21,100: This would invalidate the bullish outlook and signal further downside, with targets around 19,400 – 19,200.
⚠️ Risk Management Tips
Position Sizing: Invest gradually as prices approach the support zones.
Avoid Overleveraging: Use a small portion of your capital per trade to minimize risks.
Strict Stop-Losses: Stick to the 21,100 threshold to protect against large losses.
🚀 Final Takeaway
This Wave C correction offers significant opportunities near the support zones, but patience and confirmation are essential. A strong rebound could set the stage for the next bullish cycle, while a breakdown below 21,100 could lead to deeper corrections.

Stay disciplined and follow your trading plan! 📈